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Jump in sales drives Zimplats Q1 revenue up 11pct

HARARE, August 2 (The Source) – Zimplats reported an 11 percent increase in revenue to $143,5 million in the quarter to June from $128,9 million in the same quarter last year, driven by a 6 percent increase in platinum group metals (4E) sales volumes.

Compared to the previous quarter this year, revenue was up 9 percent.

Sales in the quarter were up from 143,600 tonnes last year to 152,900 tonnes this year pushing net operating costs up 10 percent to $109, 6 million. Cash costs per 4E ounce increased marginally from $612 to $620.

Ore mined was up 11 percent from 1,6 million tonnes during the same quarter last year to 1,8 million tonnes this year. Ore milled grew 12 percent to 1,8 million tonnes while 4E head grade, at 3.24g/t remained constant.

Overall, 4E metal production in converter matte increased by 6 percent from last year to 152,9 ounces in line with the increase in milling throughput.

“The redevelopment of Bimha Mine remains on schedule to reach full production in April 2018. A total of $36 million had been spent on the project as at 30 June 2017 against an approved total project budget of $92 million,” the company reported on Tuesday.

“The development of Mupani Mine (the replacement mine for Ngwarati and Rukodzi mines) is on schedule, targeting ore contact by May 2020 and full production in August 2025. A total of $11 million had been spent on the project as at 30 June 2017 against an approved total project budget of $264 million.”

Local spend in Zimbabwe (excluding payments to government and related institutions) increased to $114 million from the $51 million recorded in the previous quarter. Total payments to government in direct and indirect taxes increased to $51 million from the $10 million reported in the previous quarter.

Royalties at $3,5 million were 11 percent higher than last year, in line with the increase in revenue.